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HomeSportsMailbag Q&A: Exploring Premier League Salary Cap- Rationale, Winners, Losers, and Implementation

Mailbag Q&A: Exploring Premier League Salary Cap- Rationale, Winners, Losers, and Implementation

Premier League clubs this week decided to move forward with plans for a hard spending limit — essentially a salary cap based on the income of the lowest-earning team in the league.

But what does this all mean? Journalist Matt Slater, who first reported the story, has the answers. You can also listen to Matt for free on Apple Podcasts, Spotify, and other platforms on The Athletic FC Podcast.

Let’s take a closer look…


What are the real motivations for such a rule? — Adam M

Some, like Crystal Palace chairman Steve Parish, are concerned about the league’s competitive balance. The ‘Big Six’, and potentially more, are gaining revenue faster than other clubs, leading to concerns about financial fair play. The ‘anchoring’ rule aims to slow down the big clubs and maintain balance in the league.

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What is the role of the Professional Footballers’ Association (PFA)? — Peyton B

The PFA, as the players’ union, has historically supported players’ interests without engaging in big disputes with clubs. They are hesitant about salary caps and require proper consultation before agreeing to any limits.


Erling Haaland with the 2022-23 PFA Player of the Year award (PFA)

Debate around cost controls in football must navigate legal considerations to ensure fairness and transparency.


Which clubs will benefit the most and the least from this? The clubs that objected to this seem very different, so it’s hard to tell — Andrew R

Clubs like Crystal Palace see potential benefits in maintaining competitiveness, while others see the rule as a way to control the big clubs’ spending. Different clubs have varying opinions based on their ambitions and current standings.

Manchester United


Sir Jim Ratcliffe, part-owner of Manchester United (right), with Sir Dave Brailsford (Robin Jones/Getty Images)

Varying club interests play a role in supporting or opposing the spending limit proposal.


Will the players not just go to a league without a cap? — Darragh N

The Premier League remains the top destination for players due to its high salaries and competitive nature. While concerns exist, other leagues do not offer similar financial benefits as the Premier League.

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How punitive are these rules on the richer clubs? A circa £500m limit on spending is hardly forcing teams to scratch around the bargain bin — Tom N

The proposed spending limit may not heavily impact richer clubs like Chelsea immediately, as they remain dominant in spending. The effectiveness of the rule in equalizing club spending remains to be seen.


Curious how it will work, timing-wise. Will they confirm the amounts available to spend the next season, once the season is over? — Courtney A

The specifics of implementing the spending limit are still under consideration. Setting the cap in advance based on projected club incomes and expenditures is crucial for clubs to plan accordingly.


How will this new rule tie in with UEFA’s rules? Could you have a situation where a team spends more than £500million and wins the Premier League fairly but is not allowed to play in Europe? — Ben H

The new rule will align with UEFA’s regulations to prevent excessive spending. While hypothetical scenarios exist, measures are in place to penalize clubs exceeding spending limits and ensure fair play in European competitions.

 (Top photo: Michael Regan/Getty Images)

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